Kids insurance -education plans

[alternateshift]

true … just feel as parents we should at least try to provide them some simple coverage till they are old enough to pay and decide on what they want

[daddy2007]

wywy2:

For money matters, I need to learn more as I feel I can be a bit blur about such things. Tks!!

No problem. I am learning too.

[mommy2two]

agree with daddy2007 on the piece of mind thingy.

i’m still looking around for an affordable H&S rider plan but hv bought education plan for my kids. no endownment or other plans coz pocket hole getting bigger wif the nursery/childcare expenses!

[mrswongtuition]

daddy2007:

As for the kid, I will continue to pay for her until she turns 21 where I will ask her to pay for herself. $100+ p.a. to buy a piece of mind which IMHO I think is worth it. Of course the premium might grow over time.

My parents bought alot of insurance for me when I was younger and like you said, they ask me to pay for them on my own when I turn 21.

FYI, it was not easy because I was only on scholarship allowance ($800/mth) then. The insurance premiums runs in THOUSANDS a year. Even after changing them to monthly payments, half my scholarship allowance (it's like a monthly pocket money) was gone.

Really resent my parents for buying so many policies at that time!
Then I argued with my mum to continue paying for me at least till I started working and got a proper salary. (I was also saving up for wedding at that time!)

End up, my mum continued to pay part of the premiums for me until I got married.
Cos my brother studied for many many many years (post grad), my mum cashed out some of the policies and till now (he's already working), she's still paying the rest for him cos his premiums are SKY HIGH, alot more than mine and he only started working beginning of this year.

If it's only $100++ per annum I think it's still manageable (squeeze some out from monthly allowance).
However, think again. What would your girl be doing at age 21? Most likely still in uni without an income (and the allowance would still come from you). Will be be fair to pass on the payment of premiums to her?

It'll be fairer to say that they will take over the premiums when they finish uni and start work.

[daddy2007]

mrswongtuition:

My parents bought alot of insurance for me when I was younger and like you said, they ask me to pay for them on my own when I turn 21.

Really resent my parents for buying so many policies at that time!

Sometime I am quite pissed off with some agents for \"attacking\" on the emotion side of the parent when selling insurance. They will try to convince the parent that they should save (by buying endownment) so that the children will have tuition money, they should buy insurance for the child when they are young as the the premium is low and the child should be protected.

Being a parent which will naturally care for the child, one's heart will rule over the head and start to buy alot of different type of policies for (or related to) the child

I still don't understand why a child need insurance (to cover death & critical illness). They might have forgot the original intent of insurance. My opinion is that insurance is to provide means for the dependents to continue to live if the insured passed away. A child will have no dependent to provide for!

The reason why the premium for a child's insurance is low is because the probability of a claim (for the child) for death or critical illness is low. The insurer is not stupid and they exist to earn money :lol:

My belief is that a good H&S plan for the child is good enough. Insurance is not required until probably the child turns to adult

[daddy2007]

mrswongtuition:

It'll be fairer to say that they will take over the premiums when they finish uni and start work.

I totally agreed with you :celebrate:

[thebusybee]

daddy2007:

I still don't understand why a child need insurance (to cover death & critical illness). They might have forgot the original intent of insurance. My opinion is that insurance is to provide means for the dependents to continue to live if the insured passed away. A child will have no dependent to provide for!

My belief is that a good H&S plan for the child is good enough. Insurance is not required until probably the child turns to adult

That's exactly what my agent advices us, a child doesn't need insurance, it's us parents need more protections to ensure our child has enough money to live if (touch wood) anything happen to us.

Talking about H&S for child, which policy is the best?

[blesseddad]

thebusybee:

That's exactly what my agent advices us, a child doesn't need insurance, it's us parents need more protections to ensure our child has enough money to live if (touch wood) anything happen to us.

Talking about H&S for child, which policy is the best?

I bought Income H&S for my baby. But I am not on Income. It really depends. They are all pretty similar and layman cannot really differentiate unless you have the time to go through all the T&C. Let a independent FA do display all that they have and then tell you one by one the adv and disadv of each one. Then you make the informed decision.

Btw, I am not a IFA. If you want to look for one, I can pass him your number or vice versa.

[rosemummy]

thebusybee:

daddy2007:

I still don't understand why a child need insurance (to cover death & critical illness). They might have forgot the original intent of insurance. My opinion is that insurance is to provide means for the dependents to continue to live if the insured passed away. A child will have no dependent to provide for!

My belief is that a good H&S plan for the child is good enough. Insurance is not required until probably the child turns to adult

That's exactly what my agent advices us, a child doesn't need insurance, it's us parents need more protections to ensure our child has enough money to live if (touch wood) anything happen to us.

Talking about H&S for child, which policy is the best?

Life insurance for young children may not be a need, but I think it's a good investment for the future. I bought quite a substantial amount of whole life policy when my child was very young. With the bonus and annual increase in coverage, the premium will work out to about the same as what you have to pay for a term policy at age 20+ (about the time when they start working and paying for their own insurance). What's more, the coverage amount will grow as they start a family, unlike a term policy, and there's also a good cash value should they need it then.

[Eagle-Ladybird]

rosemummy:

Life insurance for young children may not be a need, but I think it's a good investment for the future. I bought quite a substantial amount of whole life policy when my child was very young. With the bonus and annual increase in coverage, the premium will work out to about the same as what you have to pay for a term policy at age 20+ (about the time when they start working and paying for their own insurance). What's more, the coverage amount will grow as they start a family, unlike a term policy, and there's also a good cash value should they need it then.

I totally agreed.

At the end of the day, it's about what kind of risks one hopes to cover, and one's affordability. To me, the 1st on the list must be H+S, followed by critical illness. Critical illness can strike not only adults but children as well. And the compensation from such cases would be of tremendous help financially.

Then death, and lastly investment type. Death is more relevant for parents, of course, than children. And for those who has mortagages, it would be good to have mortgage insurance as well.

I have whole life policies on both of my kids, when they turned 1. My rationale is simple : at such tender age, I'm able to cover them for S$100k cover sum, for a yearly premium of S$1k or less. By the time they can afford to takeover from me, the coverage sum would have grown (hopefully), and would have been in positive cash values (again, hopefully), and yet premiums remained very affordable (maybe half of what they would have to pay if they start then). At this stage, it's the Critical Illness of the child that matters more than death.

I don't buy education policies because I invest actively. But that does not mean that they are not good. Education plans are basically investment link type of policies, best suited to those who are not comfortable with self active investing.